Commercial Real Estate Purchase Agreement Template for Saudi Arabia

The Commercial Real Estate Purchase Agreement is a crucial legal instrument used in Saudi Arabia for facilitating the sale and purchase of commercial properties. This document is essential when transferring ownership of any commercial real estate, including office buildings, retail spaces, industrial facilities, or mixed-use developments. It must comply with Saudi Arabian law, including Shariah principles, and incorporate specific requirements from the Real Estate Registration Law, Foreign Investment Law, and local municipality regulations. The agreement covers all vital aspects of the transaction, from property description and purchase price to warranties and completion requirements, while ensuring proper documentation for property registration authorities. It's particularly important for both domestic and foreign investors, requiring careful consideration of ownership restrictions, zoning requirements, and commercial use regulations specific to Saudi Arabia.

1. Parties: Identification of the seller and purchaser, including full legal names, addresses, and commercial registration details

2. Background: Context of the transaction, including property overview and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the commercial property, including exact location, boundaries, and size

5. Purchase Price: Agreed purchase price, payment terms, and method of payment

6. Payment Schedule: Breakdown of payment installments, dates, and payment mechanisms

7. Due Diligence: Buyer's rights and timeline for property inspection and document verification

8. Conditions Precedent: Conditions that must be satisfied before completion of the sale

9. Completion: Process and requirements for closing the transaction

10. Seller's Warranties: Warranties regarding property ownership, condition, and compliance with laws

11. Property Transfer: Process and requirements for legal transfer of the property

12. Title and Registration: Provisions regarding clean title and registration requirements

13. Taxes and Fees: Allocation of taxes, registration fees, and other transaction costs

14. Default and Termination: Consequences of default and termination rights

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

16. Notices: Method and addresses for formal communications between parties

17. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability